If the condition is just too bad for this, and rules & regulations prevent this, consider #2.2) Seller Finance with a reasonable down payment and carry the note for the difference. 

We also have to be tighter with the numbers on our flips, has to be an even better deal for us to carry the risk moving forward.

Conventional loans do not typically require residence.You just need to make sure there is NO pre-payment penalty for paying off the loan early.Also you will need all the repair money and carrying costs available in cash/credit. 

Carry on !! 

If he is 80+ and just wants the cash flow, then give him 5-15% down payment and have him carry a note for 5-10 years at 5%.

@Brandon Turner also mentions in webinars, you can carry a hand written letter (or create one using) biggerpockets.com/dmletter and keep it in your car for an opportune moment.

What they choose to do once they find out is anybody's guess, but if they have heartburn about it, transfer it back to your friend's name and carry on.

Bidding on a foreclosure carries major risk and should only be done if you are able to absorb a big mistake.

Hi Kent, was the note originated by a financial institution or a seller carry-back?

Single family price per square foot probably would not carry much weight when you consider a 4 plex we are talking 4x all of the appliances, sinks, plumbing hook ups.